Blog > Buyer Representation Agreements in Ontario: What Markham Buyers Sign
Buying Agent Services · Markham
What is a buyer representation agreement in Ontario?
It is the written agreement that makes you a client of a brokerage. It sets the area, property types, time period, and how the brokerage is paid. Under TRESA, it must clearly state the remuneration method before services begin.
Many Markham buyers are surprised when an agent asks them to review an agreement before touring homes. It can feel like a big commitment before you have even seen a house.
In reality, the agreement protects you. It spells out what your agent owes you, what you owe your agent, and when the relationship ends. Here is what to look for.
Why Ontario Buyers Sign an Agreement
Since December 1, 2023, Ontario real estate has been governed by the Trust in Real Estate Services Act (TRESA). Under TRESA, you are either a client of a brokerage, with full representation, or a self-represented party.
Before providing services, your agent must give you and explain the RECO Information Guide. The representation agreement then confirms you are a client, which means your agent must protect and promote your best interests.
What the Agreement Covers
- Geographic area: for example, Markham only, or Markham and Richmond Hill.
- Property type: detached, townhouse, condo, or all residential.
- Time period: the start and end dates of the agreement.
- Remuneration: how the brokerage is paid. Under TRESA, the agreement must clearly identify the method used to determine what the buyer would pay.
- Holdover period: a set time after the agreement ends during which the brokerage may still be owed payment if you buy a home it introduced to you.
- Type of representation: brokerage representation or designated representation.
How Your Buyer's Agent Is Paid
In many Markham transactions, the seller's listing brokerage offers to pay part of its commission to the buyer's brokerage. Your agreement explains what happens if that offer is lower than what your agreement states, or if there is no offer at all, such as on some private sales.
Commission in Ontario is always negotiable and never fixed by law. Ask your agent to walk through a real example so you know exactly what you could owe and when.
What to Check Before You Sign
- Keep the term reasonable. Match it to your realistic search timeline. You can extend it later.
- Match the area and property type to what you are actually searching for.
- Understand the holdover clause and how long it runs.
- Ask about multiple representation. Know what happens if you want to buy a home listed by the same brokerage.
- Ask for the services in plain language: showings, comparable sales, offer strategy, negotiation, and help with conditions.
Can You Buy Without an Agent?
Yes. You can be a self-represented party. But the listing agent represents the seller, not you. RECO's own disclosure form warns self-represented buyers that the agent cannot act in their best interests. In a $1M+ Markham purchase, pricing advice, conditions, and negotiation usually matter a great deal.
See what full buyer representation includes on the buying agent services page, or read how the buying process works in Markham.
Frequently Asked Questions
Do I have to sign a buyer agreement to see a house in Ontario?
To receive services as a client, you enter a representation agreement. If you prefer not to, you can be a self-represented party, but you will not receive advice or representation from the agent.
Can I cancel a buyer representation agreement?
Cancellation terms depend on the agreement. Read them before signing, and ask your agent to explain how either side can end it.
Who pays the buyer's agent in Markham?
Often, the seller's brokerage offers to share its commission with the buyer's brokerage. Your agreement explains what you would owe if that amount is lower or not offered. Commission is always negotiable.